Hotel costs for business travelers expected to rise, NYU study says

Room rates could rise 5 to 6 percent next year and fewer deals may be offered

6:56 PM,
Sep. 17, 2013

David Townshend, senior vice president of global sales at Marriott International, said the chain's hotels 'are extending fewer deals to fewer accounts.' Prices for all hotels are expected to rise 5 to 6 percent next year.

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Business travelers can expect to pay 5 to 6 percent more for hotel rooms next year, according to a New York University study.

Each fall, U.S. companies and hotels agree to corporate rates and amenities for the following year, and this year, Bjorn Hanson, divisional dean of NYU's hospitality school, says the two sides are further apart than normal as negotiations get underway.

Business travelers are a lucrative market for hotels: Almost 20 percent of occupied U.S. room nights and almost 30 percent of U.S. lodging industry revenue come from corporate and contract rates, Hanson says. ...